* Oil prices fell on expectations of OPEC inaction on output as its focus stays firmly on market share, while concerns about China’s economy weighed on the demand outlook.

* Data on Tuesday showed U.S. consumer confidence dipped, while a survey on business activity in U.S. Midwest also underwhelmed.

* That does not bode well for the Institute of Supply Management’s manufacturing survey for May, due at 10 a.m. ET (1400 GMT), with traders saying that a weak reading could see chances of a rate hike in June recede.

* The Federal Reserve releases its Beige Book, a compendium of anecdotes on the health of the economy at 2 p.m.

* The central bank caught investors off guard earlier this month when it signaled its next rate hike could be as soon as its June 14-15 meeting.

* However, after the drop in oil prices and disappointing U.S. and China data, traders are pricing only a 22.5 percent chance of a hike in June, down from a probability of around 32 percent on Monday, according to the CME Group FedWatch tool.

* The S&P 500 wrapped up its third straight month of gains on a flat note on Tuesday as weaker energy shares countered a rise in safe-haven utilities.

* Shares of Under Armour were down 4.5 percent at $36.02 premarket after the sports apparel and shoe maker cut its full-year forecast.

* Bigger rival Nike fell 3.5 percent to $53.30 after a Morgan Stanley downgrade on higher chances of a slowdown in U.S. sales due to competition and a weakening U.S. market.

* Handbag maker Michael Kors jumped 12.1 percent to $47.90 after posting its strongest sales growth in a year and announcing a $1 billion share buyback.

* Demandware soared 52.12 percent to $73 after Salesforce.com agreed to buy the company in a $2.8 billion deal. Salesforce was down 1.3 percent at $82.60.